Consolidated net sales were $382.1 million, a decrease of 3.5% over
the prior year period.

Finish Line comparable store sales decreased 5.8%.

Diluted loss per share was $(0.49).

“Our third quarter performance was severely impacted by a disruption in
our supply chain following the implementation of our new warehouse and
order management system,” said Glenn Lyon, Chairman and Chief Executive
Officer of Finish Line. “Specifically, in October, we began experiencing
issues flowing fresh inventory into our stores as well as fulfilling
online orders as the new system was unable to process freight at volumes
necessary to support our sales plans. We worked quickly to address the
disruption in our system and improve our operating capabilities,
increasing technical and operational resources including third party
experts. We have achieved a pickup in sales trends as the quantity and
quality of our inventory improved in recent weeks. Fourth
quarter-to-date comps for Finish Line, which include the fiscal month of
December ended January 2, 2016, were up 6.2%. We anticipate that we’ll
return to a stable operating environment during the first quarter and we
will start leveraging the multiple benefits from our supply chain system
enhancements,” he added.

The company estimates that the total impact of the supply chain
disruptions on third quarter bottom line was a loss of $0.42 per share
which includes $32 million in lost sales combined with margin pressures
and additional SG&A expenses to correct the issues and improve operating
capabilities.

Balance Sheet

As of November 28, 2015, consolidated merchandise inventories increased
4.0% to $414.6 million compared to $398.6 million as of November 29,
2014. The increase in inventories was driven by a substantial increase
in receipts during the last week of the quarter. This was partially
offset by an average inventory decline of 14% throughout the quarter as
the result of the supply chain disruptions.

The company repurchased 500,000 shares of common stock in the third
quarter, totaling $9.7 million. The company has 4.3 million shares
remaining on its current Board authorized repurchase program.

As of November 28, 2015, the company had no interest-bearing debt and
$55.3 million in cash and cash equivalents.

CEO Succession Plan

In a separate release issued today, the company announced that Sam Sato,
currently President of Finish Line, will succeed Glenn Lyon as Chief
Executive Officer effective February 28, 2016 and will report directly
to the board of directors. Mr. Lyon will continue to serve as Executive
Chairman of the Board through December 31, 2016 before transitioning to
the role of non-Executive Chairman of the Board beginning January 1,
2017.

Store Profitability Improvement

The company also announced today that it will improve the profitability
of its store fleet by closing up to 150 stores, or 25% of its store base
over the next four years. These stores produce average annual sales of
approximately $1 million, a portion of which the company expects to
recapture at nearby locations and through its digital sites. The company
expects the store closures to generate a 100 basis point improvement in
store contribution margins.

Quarterly Cash Dividend Increased 11%

The board of directors has declared a quarterly cash dividend of $0.10
per share of outstanding common stock. This represents a $0.01 per
share, or 11%, increase over the previous dividend paid by the
company. The quarterly cash dividend will be payable on March 14, 2016
to shareholders of record as of February 26, 2016.

Lyon continued, “We are rigorously looking at all opportunities to
strengthen every component of this enterprise. We are confident that the
transformational changes we are making will positively impact our
customer connections, and lead to increased earnings power and greater
shareholder returns for years to come.”

Outlook

For the fiscal year ending February 27, 2016, the company now expects
Finish Line comparable store sales to be up low-single digits and
non-GAAP diluted earnings per share between $1.18 and $1.23.

For the fourth quarter ending February 27, 2016, the company expects
Finish Line comparable store sales to be up in the low-single to
mid-single digit range and non-GAAP diluted earnings per share between
$0.78 and $0.83.

Q3 Fiscal 2016 Conference Call Today, January 7,
2016 at 8:30 a.m.

The company will host a conference call for investors today, January 7,
2016, at 8:30 a.m. Eastern. To participate in the live conference call,
dial 866-923-8645 (U.S. and Canada) or 660-422-4970 (International),
conference ID #93848733. The live conference call will also be
accessible online at www.finishline.com.
A replay of the conference call can be accessed approximately two hours
following the completion of the call by dialing 855-859-2056, conference
ID #93848733. This recording will be made available through Sunday,
February 7, 2016. The replay will also be accessible online at www.finishline.com.

Disclosure Regarding Non-GAAP Measures

This report refers to certain financial measures that are identified as
non-GAAP. The company believes that these non-GAAP measures including
selling, general, and administrative expenses, operating (loss) income,
income tax (benefit) expense, net (loss) income attributable to The
Finish Line, Inc., and diluted (loss) earnings per share attributable to
The Finish Line, Inc. shareholders, are helpful to investors because
they allow for a more direct comparison of the company’s year-over-year
performance and are useful in assessing the company’s progress in
achieving its long-term financial objectives. This supplemental
information should not be considered in isolation or as a substitute for
the related GAAP measures. A reconciliation of the non-GAAP measures to
the comparable GAAP measures can be found in the company’s Form 8-K
filed with the Securities and Exchange Commission with this release.

About The Finish Line, Inc.

The Finish Line, Inc. is a premium retailer of athletic shoes, apparel
and accessories. Headquartered in Indianapolis, Finish Line has
approximately 1,010 Finish Line branded locations primarily in U.S.
malls and shops inside Macy’s department stores and employs more than
14,000 sneakerologists who help customers every day connect with their
sport, their life and their style. Online shopping is available at www.finishline.com
and www.macys.com.
Mobile shopping is available at m.finishline.com.
Follow Finish Line on Twitter at Twitter.com/FinishLine
or Twitter.com/FinishLineNews
and “like” Finish Line on Facebook at Facebook.com/FinishLine.
Track loyalty points and find store and product information with the
free Finish Line app downloadable for iOS
and Android
customers.

Finish Line also operates the Running Specialty Group. This includes 73
specialty running stores in 16 states and the District of Columbia under
the JackRabbit, The Running Company, Run On!, Blue Mile, Boulder Running
Company, Roncker’s Running Spot, Running Fit, VA Runner, Capital
RunWalk, Richmond RoadRunner, Garry Gribble’s Running Sports, Run
Colorado, Raleigh Running Outfitters, Striders and Indiana Running
Company banners. More information is available at www.jackrabbit.com
or www.boulderrunningcompany.com.
Follow the latest about the brand on Twitter or Instagram via
@JackRabbitNYC.

Forward-Looking Statements

This news release includes statements that are or may be considered
"forward-looking" within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
These forward-looking statements generally can be identified by the use
of words or phrases such as "believe," "expect," "future," "anticipate,"
"intend," "plan," "foresee," "may," "should," "will," "estimates,"
"outlook," "potential," "optimistic," "confidence," "continue,"
"evolve," "expand," "growth" or words and phrases of similar meaning.
Statements that describe objectives, plans or goals also are
forward-looking statements.

All of these forward-looking statements are subject to risks, management
assumptions and uncertainties that could cause actual results to differ
materially from those contemplated by the relevant forward-looking
statements. The principal risk factors that could cause actual
performance and future actions to differ materially from the
forward-looking statements include, but are not limited to, the
company's reliance on a few key vendors for a majority of its
merchandise purchases (including a significant portion from one key
vendor); the availability and timely receipt of products; the ability to
timely fulfill and ship products to customers; fluctuations in oil
prices causing changes in gasoline and energy prices, resulting in
changes in consumer spending as well as increases in utility, freight
and product costs; product demand and market acceptance risks;
deterioration of macro-economic and business conditions; the inability
to locate and obtain or retain acceptable lease terms for the company's
stores; the effect of competitive products and pricing; loss of key
employees; execution of strategic growth initiatives (including actual
and potential mergers and acquisitions and other components of the
company's capital allocation strategy); cybersecurity risks, including
breach of customer data; a major failure of technology and information
systems and the other risks detailed in the company's Securities and
Exchange Commission filings. Readers are urged to consider these factors
carefully in evaluating the forward-looking statements. The
forward-looking statements included herein are made only as of the date
of this report and Finish Line undertakes no obligation to publicly
update these forward-looking statements to reflect subsequent events or
circumstances.